This article first appeared on GuruFocus.
Microsoft (NASDAQ:MSFT) is moving to reprice its Surface lineup, reflecting mounting cost pressures tied to the ongoing memory chip shortage. The company has raised prices across multiple devices, with the 12-inch Surface Pro now starting at $1,050 versus its $800 debut last year. The 13-inch Surface Pro 11th Edition has increased to $1,500 from its $1,000 launch price in 2024, while the latest 13.8-inch Surface Laptop has risen by as much as $500. In its statement, Microsoft pointed to higher memory and component costs, adding that pricing decisions will continue to be evaluated based on market conditions and operational expenses.
The shift places Microsoft alongside Dell Technologies (NYSE:DELL), Lenovo Group, and HP Inc. (NYSE:HPQ), which have also adjusted pricing and limited configurations as the supply environment tightens. The broader backdrop appears tied to accelerating demand for memory driven by the AI computing build-out, which is putting pressure on hardware costs across the industry. For Microsoft, the updated pricing could also serve as an early signal for where its next generation of Surface devices may be positioned, with new products expected in the coming weeks.
At the same time, Apple (NASDAQ:AAPL) has taken a similar approach with higher pricing on recent MacBook Air and MacBook Pro models, partly offset by increased storage. However, its Mac mini and Mac Studio desktops are facing extended backorders for high-memory configurations, reflecting strong demand from users running large language models locally. Microsoft’s latest pricing changes also mean it no longer offers a Surface PC below $1,000, creating a sharper contrast with Apple’s $599 MacBook Neo, which could potentially reshape competition at the lower end of the market.